The arrival of Vail Resorts in Andermatt should bring industry-leading customer service but there are fears it will also mean higher prices
US ski behemoth Vail Resorts has added a European destination to its ever-expanding roster, raising fears about price rises and the possible Americanisation of Alpine skiing.
The Colorado firm, which operates nearly 40 ski resorts in North America, including Whistler Blackcomb, Breckenridge and Park City, paid CHF 149 million (£122 million) for a 55 per cent stake in the Swiss resort of Andermatt.
Despite being favoured by the likes of Queen Victoria, Sir Winston Churchill and Elvis Presley, Andermatt was for years starved of investment, until Egyptian developer Samih Sawiris arrived on the scene. Beginning in 2009, he pumped more than £1 billion into the resort and ski area, with the construction of the five-star Chedi Andermatt hotel, which opened in 2013, signalling the way. Elsewhere, its lifts have been linked with the nearby resort of Sedrun, and Disentis has been incorporated into its ski pass.
However, Sawiris has long held the view that Andermatt needed a strategic ski operator to take it to the next level. Enter Vail Resorts, who are now in the driving seat. So what does this mean for European skiing?
For years Vail Resorts has set the gold standard for skiing in North America, becoming renowned for outstanding customer service, impeccable grooming, well-organised lift lines, and excellent ski schools. But this season has been one of discontent among Vail employees on the ground, with widespread complaints about pay and conditions.
As for skiers, prices for tuition in Vail’s ski schools are three times higher than in top European resorts, with a one-day private lesson costing $1,222 (£930) compared to 420CHF (£320) in Andermatt – a cost that is hard to justify when the instructors are paid on a par with their European counterparts. There are concerns that Vail’s expansion into Europe will see charges go up in both Andermatt and beyond.
Whether Vail’s arrival will impact the Swiss resort’s dining and entertainment facilities also remains to be seen. North American mountain villages are not renowned for their gastronomy, with a preference for large self-service refectory-style dining, in stark contrast to Europe’s characterful family-run mountain restaurants.
On the other hand, the addition of Andermatt to Vail’s Epic ski pass – from next winter – will be welcomed by many. A season-long Epic pass costs $841 (£692). That’s significantly more than the 287CHF (£236) charged for a one-week pass in Andermatt-Sedrun, but it provides unlimited skiing across the whole Vail Resorts stable, as well as limited skiing in its partner resorts, including five days at Switzerland’s Verbier4Vallées, seven days at France’s Trois Vallées, seven days at Dolomiti Superski in Italy, and three days at Ski Arlberg in Austria. Unlimited skiing in Andermatt will be added to the Epic pass from next season – they must be purchased before December 3 – while standard day and weekly tickets will remain on sale.
Mindful of any concerns, Vail Resorts has insisted it will pursue a policy of careful assimilation. On costs, Raphael Krucker, CEO of Andermatt Swiss Alps, said: “There is strong competition in Switzerland so prices will always need to be in line [with rival resorts].”
Vail’s Jamie Alvarez also struck a reassuring tone: “We plan to rely heavily on and learn from our partners, the community and the Andermatt-Sedrun team. Andermatt-Sedrun Sport will be retaining all employees, the existing operational infrastructure and local expertise.”
Having seen how previous investment has transformed the resort, the mood among business owners in Andermatt is broadly supportive. The bulk of the £122m will be spent on snowmaking equipment and replacing the older elements of Sedrun’s lift infrastructure, while the rest is earmarked for real estate developments in the base area of the Andermatt Reuss, as well as 1,800 new beds in the Dieni district of Sedrun. In return Vail takes the majority stakeholding in Andermatt-Sedrun Sport, which owns the lift company, one of the two main ski schools and a significant number of mountain restaurants.
If Vail can import its industry-leading customer service and mountain management, while addressing concerns about prices and retaining Andermatt’s character, the future should be bright for the resort.
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